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USE PERMIT AMENDMENT TO ALLOW THE EXPANSION OF AN APPROVED CANNABIS DISPENSARY AT 2401 STAGECOACH ROAD (P18-0720)
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RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution approving a Use Permit Amendment to allow the expansion of a previously approved cannabis dispensary facility, based on the findings subject to the conditions in the proposed resolution.
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Summary
The applicant has submitted a Use Permit Amendment application to authorize the expansion of a previously approved cannabis dispensary. The expansion will occur within an existing warehouse, increasing the size of the dispensary by approximately 3,400 sq. ft. The expansion allows utilization of an enclosed delivery area at the northwest corner of the building, thereby making deliveries more secure and improving emergency pedestrian egress from the building. The expansion will not increase the number of employees or occupant load for the facility. As reflected in the staff analysis below, the application would enhance a new business with the potential to strengthen the integrity of the surrounding area by occupying a vacant building, providing local employment, and accomplished in a manner that does not jeopardize or result in a hazard to public peace and welfare. Therefore, staff recommends approval of the proposed Use Permit amendment. Conditions in the proposed resolution are carried forward from the original Use Permit approval by City Council without changes.
DISCUSSION
Background
The application concerns a portion of an existing 31,250 square foot (sq.ft.) industrial building at the southwest corner of Stagecoach Road and Petersen Road (Attachment A - Location Map and Aerial Photo). The site is zoned IG (Industrial, General), located immediately east of U.S. 99, and is bounded to the:
• North by Petersen Road and industrial uses zoned IG and IL (Industrial, Limited);
• East by Stagecoach Road and industrial uses zoned IG;
• West and South by various industrial uses zoned IG.
The project site has three existing access points, one off Stagecoach Road and two off Peterson road. The Peterson Road side has one driveway to the main parking area and a loading dock/delivery area. According to the applicant, the parking lot will serve 8 staff members during peak times leaving 38 spaces for customers (i.e., 46 total spaces) (Attachment B - Project Proposal).
Representatives of each department within Community Development, Municipal Utilities and Fire Prevention have reviewed the site plan and found the site adequate to support the proposed use.
On August 10, 2017, the Planning Commission considered a Use Permit application to establish a cannabis dispensary at the subject property. Objections were raised by the Planning Commission as to the placement of the proposed dispensary, stating that all of the cannabis businesses seemed to be concentrated in Central/South Stockton. A motion to approve the permit failed 3-2 with 2 commissioners absent. The applicant subsequently appealed the de facto denial to the City Council. On October 17, 2017, the City Council overturned the Planning Commissions denial and approved the permit (Attachment C - Approved City Council Resolution 2017-10-17-1501) and, in doing so, authorized a maximum floor area of 6,000 sq.ft.
Present Situation
The applicant proposes to increase the permitted maximum floor area from 6,000 sq.ft. to 9,400 sq.ft. (i.e., 57%) to provide additional storage space and improved ‘back of house’ access at the rear of the subject business. Additionally, the expansion enables the use of an existing delivery area at the northwest corner of the building that, according to the applicant, will improve security for the delivery of merchandise (Attachment D - Approved Site Plan/Floor Plan & Proposed Site Plan/Floor Plan).
The delivery area and northwest exit is cut off from the main dispensary area in the originally approved project. The approved project would require egress to occur from the rear of the dispensary into empty warehouse space. The warehouse space would require lights or signage to direct someone to the exit. The expansion would connect the dispensary to the delivery area, allowing for better utilization, and install clearly defined corridors to improve emergency egress from the building.
This proposed floor area increase requires Planning Commission approval since: (a) it exceeds 10% of that approved, and (b) the approved permit does not authorize the Director to exceed the 10% amount (see SMC § 16.104.030).
In addition to a Use Permit, cannabis businesses require an ‘Operators Permit’ from the Stockton Police Department per SMC Chapter 5.100 (Cannabis Permit, Audit and Reporting). The Operators Permit for this business is pending the completion of a complete build-out of the tenant improvements, and therefore has not been issued. Should the Planning Commission approve the requested Use Permit Amendment, the applicant will need to also amend their Operators Permit application in order for them to be consistent. Operators Permit approval includes review of a security plan evaluated by the Stockton Police Department.
Staff Analysis
The existing 31,250 sq.ft. building is currently divided into two suites. The applicant proposes to divide one of the suites to create a 9,400 sq.ft. dispensary. As shown on the site plan, the dispensary would include a 1,735 sq.ft. dispensary room, a 759 sq.ft lobby, and the remaining space would be dedicated to storage, offices and break rooms.
The proposed expansion would increase the required off-street parking spaces for the use from 24 to 38 spaces. The proposed site plan includes additional parking spaces installed by restriping vacant space within the existing parking lot, providing a total of 46 off-street parking spaces. The anticipated number of employees during peak hours would be 8 according to the applicant, which would include sales staff, security guards, and management. This would leave 38 spaces for customers of the dispensary and future tenants.
The additional suites inside the footprint of the overall warehouse remain vacant. Occupation of these suites will require future analysis of off-street parking capacity as required by SMC § 16.64.040 Table 3-9.
Staff has not proposed any additional conditions due to the amendment as the operational characteristics and impacts remain the same after expansion within the existing structure.
Required Findings
Use Permit: General Findings
In order to approve the Use Permit Amendment, the Planning Commission must make all findings at SMC §16.168.050(A) (General Findings). As indicated in the staff report’s Proposed Resolution, the subject use is allowed in the IG zone with an approved Use Permit and complies with applicable provisions of the Development Code. The proposed expansion would be consistent with the Industrial land use designation of the General Plan and the site would be physically suitable for the proposed use, including the provision of utility services (e.g. sanitation and water), public access, and the absence of physical constraints (e.g. earth, movement, flooding, etc.). Further, staff’s recommendation is emphasized by the project’s ability to strengthen the integrity of the surrounding area by permitting a vacant portion of the existing building to be utilized which would not jeopardize or be hazardous to public peace and welfare.
Public Comments
Notice for this item was published in the Record on January 24, 2019, and a notice has been sent to all property owners within a 300-foot radius of 2401 Stagecoach Road on January 24, 2019. Staff has not received any comment from the public on this project.
Environmental Clearance
The proposed project is a Categorically Exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines §15301 (Class 1, Existing Facilities) since it consists of the operation of commercial use within an existing building. The project is also not subject to any of the exceptions to the use of a Categorical Exemption enumerated at CEQA Guidelines §15300.2.
Attachment A - Location Map and Aerial Photo
Attachment B - Project Proposal
Attachment C - Approved City Council Resolution 2017-10-17-1501
Attachment D - Approved Site Plan/Floor Plan & Proposed Site Plan/Floor Plan
This staff report was prepared by Kevin Colin, Planning Manager (209) 937-8446; kevin.colin@stocktonca.gov.